Sino Land Company Limited (HKG:83) Is An Attractive Dividend Stock, Here’s Why
Sino Land Company Limited (HKG:83) has pleased shareholders over the past 10 years, paying out an average dividend of 4.0% annually. The stock currently pays out a dividend yield of 4.0%, and has a market cap of HK$87.56b. Let’s dig deeper into whether Sino Land should have a place in your portfolio.
Check out our latest analysis for Sino Land
How I analyze a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is their annual yield among the top 25% of dividend payers?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has the amount of dividend per share grown over the past?
Can it afford to pay the current rate of dividends from its earnings?
Will it be able to continue to payout at the current rate in the future?
How well does Sino Land fit our criteria?
The company currently pays out 23.3% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. Going forward, analysts expect 83’s payout to increase to 63.8% of its earnings, which leads to a dividend yield of 4.1%. However, EPS is forecasted to fall to HK$1.15 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. In the case of 83 it has increased its DPS from HK$0.36 to HK$0.53 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes 83 a true dividend rockstar.
In terms of its peers, Sino Land has a yield of 4.0%, which is high for Real Estate stocks but still below the market’s top dividend payers.
Next Steps:
With this in mind, I definitely rank Sino Land as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Below, I’ve compiled three important aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for 83’s future growth? Take a look at our free research report of analyst consensus for 83’s outlook.
Valuation: What is 83 worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether 83 is currently mispriced by the market.
Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
